- Xiaomi delivered a record 81,302 cars in the second quarter and is currently struggling to meet delivery demand in China.
- Xiaomi’s efforts to enter the European EV market are currently in the research and preparation phase.
Xiaomi (HKG: 1810, OTCMKTS: XIACY) president said the company has decided to officially enter the European electric vehicle (EV) market in 2027, marking the first time the company has mentioned Europe as the first overseas market for its EV business.
William Lu, or Lu Weibing, mentioned the plan during an earnings call yesterday, saying that the company is currently in the research and preparation stage for the effort.
The Xiaomi brand is well-known overseas, but Xiaomi EV is not yet, he said.
During an interview with Chinese media at the MWC 2025 event in Barcelona, Spain, in March, Lu said that Xiaomi’s EV unit, Xiaomi EV, aims to sell EVs in overseas markets by 2027.
On July 5, Lu shared a photo on Weibo showing an SU7 Ultra with a German license plate, saying that it was Xiaomi’s first experimental vehicle registered in Europe.
Xiaomi founder, chairman, and CEO Lei Jun said in a live video broadcast on July 2 that Xiaomi would prioritize meeting domestic market delivery demands and expected to be ready to enter overseas markets in 2027.
Xiaomi is facing severe production shortages in the domestic market, with delivery wait times for the SU7 currently reaching 41 weeks and 58 weeks for another model, the YU7, according to daily monitoring by CnEVPost.
In the second quarter of 2025, Xiaomi’s EV business generated revenue of RMB 20.6 billion ($2.87 billion), according to the smartphone manufacturer’s unaudited financial report released yesterday.
The gross margin for innovative businesses, including EVs and AI, was 26.4 percent in the second quarter, up from 23.2 percent in the first quarter and 15.4 percent in the same period last year.
These innovative businesses reported an operating loss of RMB 300 million in the second quarter, down from RMB 500 million in the first quarter.
In the second quarter, Xiaomi delivered a record 81,302 vehicles, up 197.73 percent year-on-year and 7.16 percent from the first quarter.
Xiaomi’s EV business is expected to achieve monthly or quarterly profitability in the second half of this year, Lu said yesterday, adding that the business still has significant cumulative losses due to investments of over RMB 30 billion over the past three years.
($1 = RMB 7.1873)
The gross margin for Xiaomi’s innovative businesses, including EV and AI, was 26.4 percent in the second quarter, higher than 23.2 percent in the first quarter.
